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Russian IT Companies Support Cryptocurrency Payments For Software Exports

When doing business with customers located outside of Russia, Russian businesses operating in the information technology (IT) industry want to be able to send and receive cryptocurrency payments. This is stated in a road map that was provided to the Ministry of Digital Development, Communications, and Mass Media by Russoft, which is the organisation of Russian software developers.

According to a report published by a Russian business newspaper on Thursday, the trade group is certain that alternative payment alternatives, such as cryptocurrency, are required in order to mitigate the impact of financial restrictions and bring down prices. The paper suggests making test legal systems that would make it easier to put these kinds of mechanisms into place.

The members of the group are unhappy about the challenges that arise when collecting funds from outside the country. Firms in Russia have been forced to contend with significant sanctions as a result of Moscow’s decision to invade Ukraine. These sanctions have severely restricted businesses’ ability to access the global financial system. In addition, Russoft is requesting that the Russian authorities relax the limitations on foreign currency that were implemented in the midst of the intensifying war.

Lev Matveev, a member of the organization’s executive board, made the observation that information technology is unique in comparison to many other businesses when attempting to explain the organization’s interest in digital assets. He elaborated that because the majority of the products created in this sector do not physically cross the border, they cannot be classified as foreign trade commodities. This makes it impossible for the companies to get around the currency controls, as quoted by the Russian crypto news outlet Bits.media.

For the last several months, Russia has been deliberating about how best to regulate cryptocurrencies. The majority of government institutions, led by the central bank, are in agreement that decentralised currencies such as bitcoin should not be accepted as a means of payment within the Russian Federation; however, the pressure from sanctions has increased support for the idea of legalising their use in international settlements.

After agreeing with the Ministry of Finance that the nation “can’t manage without cross-border crypto payments,” the Bank of Russia first advocated a broad ban on all activity using cryptocurrencies in January. However, it subsequently retracted its proposal. In order to completely govern the cryptocurrency field, the Ministry of Finance has drafted a bill titled “On Digital Currency,” which has not yet been considered by legislators. In the interim, a bill proposing to legalise the use of cryptocurrencies in international commerce and a draught legislation on mining were both introduced into parliament.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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